Investment professionals, managers, and traders launch hedge funds to exploit perceived price inefficiencies in any market. Good managers launch and achieve exceptional performance figures. The performance attracts attention from the media, financial professionals, and other investors. Investors then subscribe, sending money to the fund. Over time, the fund’s alpha capability dissipates for a variety of reasons, and when this happens, it’s no longer the most efficient allocation of capital. How can investors determine when the “Golden Hour” ends and it’s time to place a redemption notice?Continue reading “How To Capture A Manager’s “Golden Hour””→

We live in a world of low interest rates with little sign of reversing in a meaningful way anytime soon while major equity markets move higher on a seemingly daily basis. Active fund managers around the globe struggle to produce outsized returns compared to passive benchmarks. Seeking and diversifying alpha from traditional sources has become more difficult as managers pile into the same trades and strategies. Continue reading “Are Alternatives Still Able To Provide Outsized Returns?”→

Research confirms alpha exists in hedge funds and particularly among small managers. However, sourcing quality opportunities among thousands of alternative strategies remains a time-consuming challenge, especially if done the traditional way. Using the latest academic research and technology, investors can quickly and efficiently narrow any number of funds to a manageable size, finding best-in-class solutions. Continue reading “How Can Investors Source Alpha In An Evolving Alternative Investment Environment?”→

Fundbase operates a state of the art buy-side fund sourcing and portfolio management analytics platform, attracting some of the most sophisticated hedge investors globally. In addition, the firm established itself as a major player in the Swiss fund representation market. Switzerland is currently the third largest institutional fund market globally. Boutique fund managers must register their funds with a Swiss fund representative to distribute their products to qualified investors in Switzerland. Fundbase quickly gained market share and started to provide online distribution services to these clients.

Fundbase operates a state of the art buy-side fund sourcing and portfolio management analytics platform, attracting some of the most sophisticated hedge investors globally. In addition, the firm established itself as a major player in the Swiss fund representation market. Switzerland is currently the third largest institutional fund market globally. Boutique fund managers must register their funds with a Swiss fund representative to distribute their products to qualified investors in Switzerland. Fundbase quickly gained market share and started to provide online distribution services to these clients.

Until recently, a hedge fund’s total return was understood as beta plus alpha, but now actually part of the alpha can be described as alternative beta – market neutral factors that you can create in a systematic fashion. So now we have beta plus alternative beta (or alternative risk premia) plus alpha.

The proliferation of these risk premia strategies over the past couple of years has led to a commoditization of the space, and access to these return sources for institutional investors has much improved.